Canada’s New Millennium Iron Corp. officials have announced an agreement with Tata Steel Minerals Canada, in which it has a 20% interest, to enter a framework with Labrador Iron Mines Holdings Ltd. to enhance Tata Steel’s direct ore shipping (DSO) project. “The framework agreement provides operating efficiencies for both companies, resulting in a ‘win-win’ outcome,” said New Millennium CEO Dean Journeaux. “Both companies stand to achieve savings through economies of scale.”
The acquisition of 51% and possibly 70% of the Howse deposit – which contains 28 million tons of historical resources – will result in the addition of resources about 4 km from the year-round plant site Tata Minerals is now constructing in the Timmins area, said New Millennium officials.
The companies will develop a rail line to start near Tata’s Timmins Area processing plant through Labrador’s Silver Yard facilities to the TSH main line. Both companies will further coordinate development of port infrastructure at SeptÎles, establishing common access to its deep-sea dock.
Founded in 2003, the Calgary-based New Millennium controls the Millennium Iron Range in Newfoundland and Labrador and in Quebec, which holds one of the world’s largest undeveloped magnetic iron ore deposits. New Millennium and India’s Tata Steel Ltd., one of the world’s biggest steel producers, are also advancing a direct shipping ore project to near term production; Tata owns 26.3% of New Millennium as a majority shareholder.